Central Bank to assess creditworthiness of Lankan households

• Aimed at measuring risks to the financial system
• Conducting of island-wide survey to be outsourced

The Central Bank is planning to assess the creditworthiness of Sri Lankan households, as the financial sector regulator wants to identify the risks emanating from the household sector to the country’s financial system.

“The Central Bank is in the process of strengthening the macro prudential surveillance framework by extending its surveillance to the household sector.

Accordingly the Central Bank has decided to outsource the conduct of an island-wide survey on household sector’s creditworthiness in order to identify risks and vulnerabilities emanating from the household sector and its implications on the financial system stability with the view of proposing measures for systemic risk mitigation to strengthen financial system stability,” the Central Bank said in a newspaper advertisement this week.

The main objective of this survey is to establish a comprehensive database on the household sector information that would enable the assessment of indebtedness, debt servicing capacity of the household sector and its implications on the financial system stability, the Central Bank said.

The bank is inviting companies which have been operating for over five years and had conducted at least one island-wide survey during the last five years to bid for the survey.